单选题An analyst believes that EFG will pay a $1 dividend a year from now, and will be priced at $23 per share immediately following the dividend. The risk-free rate is 4%, and the analyst forecasts an expected market return of 12%. EFG has a beta of 0.75 and a current price of $ 22. Based on this information:
单选题The term (maturity) of a forward rate agreement is 90 days and the underlying rate is 180 - day LIBOR. If 180-day LIBOR increases over the term (life) of the contract, which of the following best describes the descriptive notation for the contract and the party receiving payment at expiration, respectively? Descriptive notation Party receiving payment at expiration ①A. 3 × 6 Long ②B. 3 × 9 Long ③C. 3 × 6 Short
单选题An analyst gathered the following information about a company:
单选题Loose Truck, Inc. has cash of $100000, accounts receivable of $ 500000, and inventory of $ 400000. The firm has accounts payable of $ 200000, notes payable of $ 300000, and long-term debt of $ 200000. The firm wishes to increase its current ratio to 2.4. How much would current assets or current liabilities need to change in order to increase the current ratio to 2.4? Current assets Current liabilities ①A. + $ 200000 $ 83333 ②B. + $200000 + $ 83333 ③C. + $ 680000 $ 83333
单选题Which of the following statements about capitalizing expenses and depreciation is most accurate?（ ）
单选题In the long-run, a firm operating under perfect competition will:
单选题A last in, first out (LIFO) liquidation in an environment of rising prices will NOT do which of the following?
单选题Accounts receivable and accounts payable are most likely classified as which financial statement elements?
accounts receivable accounts payable
① assets liabilities
② revenues liabilities
③ revenues expenses
单选题Given the following frequency distribution:
Interval
Frequency
10 up to 30
5
30 up to 50
10
50 up to 70
15
70 up to 90
5 Which of the
following statements is FALSE?
A. The interval size is 20.
B. The relative interval frequency of the second interval is 14.28.
C. The interval frequency of the third interval is 15.
单选题Which of the following statements regarding a country risk premium is TRUE?
单选题Suppose that the demand curve for honey shifts such that the
equilibrium price for a pound of honey increases from $ 7 to $ 9 per pound. At
the new equilibrium, the quantity supplied increases from 500 pounds per month
to 600 pounds per month, although the supply curve has not shifted. The
elasticity of supply for honey is closest to:
A. +0.91.
B. +0.73.
C. +1.12.
单选题The return on a commodity index is likely to be different from returns on the underlying commodities because:
单选题Which of the following investors is least susceptible to inflation risk? A. A financial institution with assets concentrated in fixed-rate mortgages. B. An individual with a 5 year certificate of deposit at a local financial institution. C. The holder of a 15-year bond with a coupon formula equal to the U. S. prime rate plus 3.25%.
单选题The top-down approach of security analysis includes: A. industry analysis. B. All of these choices are correct. C. economic analysis.
单选题Which of the following statements regarding the Markowitz efficient
frontier is least likely to be correct? The optimal portfolio for:
A. a more risk-averse inverse investor will lie inside the efficient
frontier but will lie outside the efficient frontier for a less risk-averse
investor.
B. an investor is the portfolio that lies on the efficient frontier and
provides her with the greatest level utility.
C. an investor is found at the point of tangency between the efficient
frontier and an investor's highest utility curve.
单选题The DJIA is a biased measure and has been criticized. Which of the
statements below regarding the bias and criticisms of a price-weighted series is
false?
A. Because it is price weighted, when companies have a stock split, their
prices decline, and therefore their weight in the DJIA is reduced.
B. The weighting scheme causes a downward bias in the DJIA, because the
stocks that have higher growth rates will have higher prices.
C. Because the series is price weighted, a high-priced stock carries more
weight than a low priced stock.
单选题In order to dispel the myth that the emerging market stocks are illiquid investments, NYK, a "long only" emerging market fund manager, has two of its subsidiaries simultaneously buy and sell emerging market stocks. In its marketing literature, NYK cites the overall emerging market volume as evidence of the market"s liquidity. As a result of its actions, more investors participate in the emerging markets fund. Which of the following is most likely correct? NYK:
单选题Given the following data: Beginning LIFO Reserve $2300 Cost of Goods Sold (COGS) using LIFO $6100 COGS using FIFO of $ 4300 What is the Ending LIFO reserve?
单选题Which stage of venture capital financing is usually characterized as the period in which the capital is used for product development and marketing?
单选题An analyst has gathered the following data about a company with a 12 percent cost of capital:
Project A
Project B
Cost
$15000
$25000
Life
5 years
5 years
Cash inflows
$5000/year
$7500/year If the projects are independent, what should the company do? A. Reject A, Reject B. B. Accept A, Reject B. C. Accept A, Accept B.